The principal resources of Bangladesh are the fertile soils of the delta
region, the long growing season, and the heavy rainfall suitably
distributed over the year for growing rice and jute. The nation's
abundant water supplies are used to produce hydroelectric power and for
irrigating farmlands during the dry season. Although minerals have
traditionally been economically unimportant, the country has large
reserves of natural gas and some petroleum deposits. Natural gas is
piped into Dhaka and CHITTAGONG for industrial use. There are also large
deposits of low-grade coal, mined at Jamalpur.
I must add that Bangladesh's natural resource is huge in terms of
low-cost artisans, sea-farers and empowered women with tailoring skills.
Her rieverine and coaster fish and sea food resourcebase is very
substantial. All these including the fertile soil is as yet untapped/
underutilized in terms of potential production and more imoportantly
productivity growth due to lack of adequate investments, inadequate
opening up to foreign investments, land reforms besides political
instability, terroism and corruption.
Notes:
1. Economy : East Bengal--the region that was to become East Pakistan
and now Bangladesh -- was a prosperous region of South Asia until modern
times. It had the advantages of a mild, almost tropical climate,
fertile soil, ample water, and an abundance of fish, wildlife, and
fruit. The standard of living compared favorably with other parts of
South Asia. As early as the thirteenth century, the region was
developing as an agrarian economy. It was not entirely without
commercial centers, and Dhaka in particular grew into an important
entrepôt during the Mughal Empire. The British, however, on their
arrival in the early seventeenth century, chose to develop Calcutta as
their commercial and administrative center in South Asia. The
development of East Bengal was thereafter limited to agriculture. The
colonial infrastructure of the eighteenth and nineteenth centuries
reinforced East Bengal's function as the primary producer--chiefly of
rice and jute--for processors and traders in Calcutta and beyond.
The partition of British India and the emergence of India and Pakistan
in 1947 severely disrupted the former colonial economic system that had
preserved East Bengal (now East Pakistan) as a producer of jute and rice
for the urban industrial economy around Calcutta. East Pakistan had to
build a new industrial base and modernize agriculture in the midst of a
population explosion. Pakistan's five-year plans opted for a development
strategy based on industrialization, but the major share of the
development budget went to West Pakistan, that is, contemporary
Pakistan. Blame was placed by various observers on the West Pakistani
leaders who not only dominated the government but also most of the
fledgling industries in East Pakistan. More information about the
economic exploitation is available.
Post Independence Bangladesh had to face the devastation wrought by
earlier economic exploitation during the Pakistan era as well as
destruction of critical infrastructure during the war. After many years
of economic problems, Bangladesh has started to rebound with steady
growth in recent years.
Agriculture
Most Bangladeshis earn their livings directly or indirectly from
agriculture. Rice and jute are the primary crops; wheat is assuming
greater importance; and tea is grown in hilly regions of the northeast.
Bangladesh's fertile soil and normally ample water supply yield three
rice crops in many areas. Through better flood control and irrigation
measures, more intensive use of fertilizers and high-yielding seed
varieties, increased price incentives, and improved distribution and
rural credit networks, Bangladesh's labor-intensive agricultural sector
has achieved steady increases in foodgrain production.
Bangladesh Ministry of Agriculture
Foodgrain production in 1992 was about 20 million metric tons, a 5%
increase over the previous year. Rice is Bangladesh's principal crop,
although yields per hectare are among the lowest in Asia. While rice
output rose 3.2% in 1992, much recent growth in foodgrain output can be
attributed to the irrigated spring crop, which has increased steadily
due to the greater availability of fertilizer and irrigation equipment.
Wheat production also is expected to rise from 900,000 to about 1
million metric tons in 1992. Jute, which historically has accounted for
the bulk of Bangladesh's export receipts, faces an uncertain future due
to competition from synthetic fiber substitutes. Fishing, especially for
shrimp, has become an increasingly important source of export earnings.
Basic Information on Agriculture of Bangladesh
Area of Bangladesh 147570sq.km
Total population (January 1999) 128.1 million
GDP (1998-99) 755.73 billion Tk.
GDP Growth rate (1998-99) 5.2%
Agricultural Growth rate (1998-99) 5.0%
No. of Rural Household 17.83 million
No. of non-Farm Household 6.03 million
No. of Farm Household 11.80 million
No. of Agril. Labour Household 6.40 million
Small Household 80% (9.42 million)
Medium Household 17.50% (2.08) million)
Large Household 2.50% (0.3 million)
Cultivated Area 17.77 million acres
Cultivated Area per Household 1.5 acres
Cropping Intensity (1996-97) 174%
Irrigation Area 8.59 million acres
Although small, the industrial sector contributes significantly to
export receipts; it also provides employment and a market for cash
crops. Jute products--mainly burlap sacking and carpet backing for
export--and cotton textiles for domestic consumption predominate. Since
the early 1980s production of ready-made garments for the US market has
grown rapidly. Bangladesh is the fifth largest supplier of cotton
apparel to the United States, and it has begun exporting to West
European markets. Breaking up ships for scrap, using methods that are
highly labor intensive, now meets most of Bangladesh's domestic steel
needs. Other industries include sugar, tea, leather goods, newsprint,
pharmaceuticals, and fertilizer production. The industrial (and foreign
exchange) impact of the discovery of modest reserves of oil in 1986
remains to be assessed.
The government continues to court foreign investment. To this end, the
United States and Bangladesh signed a bilateral investment treaty which
took effect in 1989. Bangladesh also has established an export
processing zone (EPZ) in Chittagong and plans to create additional
zones. The government has offered special incentives and simplified
procedures for potential investors.
2.The economy of Bangladesh is the 31st largest economy in the world as
measured by purchasing power parity (PPP). It has made significant
strides in its economic sector since its independence in 1971.
Bangladeshi garments industry is one of the largest and comprehensive
industry[citation needed] in the world. Before 1980, Bangladesh's
economy and foreign exchange earnings were driven by the jute industry.
However, this industry started to fall dramatically from 1970, when
polypropylene products gained popularity over the jute products.
Current GDP per capita of Bangladesh registered a peak growth of 57% in
the Seventies immediately after Independence. But this proved
unsustainable and growth consequently scaled back to 29% in the Eighties
and 24% in the Nineties.
Bangladesh has also made major strides to meet the food needs of its
increasing population, through increased domestic production. Currently,
Bangladesh is the forth largest rice producing country in the world.
The land is devoted mainly to rice and jute cultivation, although wheat
production has increased in recents years;[citation needed] the country
is largely self-sufficient in rice production.[citation needed]
Nonetheless, an estimated 10% to 15% of the population faces serious
nutritional risk. Bangladesh's predominantly agricultural economy
depends heavily on an erratic monsoonal cycle, with periodic flooding
and drought. Although improving, infrastructure to support
transportation, communications, and power supply is poorly developed.
The country has large reserves of natural gas and limited reserves of
coal and oil. While Bangladesh's industrial base is weak, unskilled
labor is inexpensive and plentiful.
Most Bangladeshis earn their living from agriculture. Although rice and
jute are the primary crops, wheat is assuming greater importance. Tea is
grown in the northeast. Because of Bangladesh's fertile soil and
normally ample water supply, rice can be grown and harvested three times
a year in many areas. Due to a number of factors, Bangladesh's
labor-intensive agriculture has achieved steady increases in food grain
production despite the often unfavorable weather conditions. These
include better flood control and irrigation, a generally more efficient
use of fertilizers, and the establishment of better distribution and
rural credit networks. With 2000000.2 million metric tons produced in
1999, rice is Bangladesh's principal crop. National sales of the classes
of insecticide used on rice, including granular carbofuran, synthetic
pyrethroids, and malathion exceeded 13,000 tons of formulated product in
2003. The insecticides not only represent an environmental threat, but
are a significant expenditure to poor rice farmers. The Bangladesh Rice
Research Institute is working with various NGOs and international
organizations to reduce insecticide use in rice [4]. In comparison to
rice, wheat output in 1999 was 1.9 million metric tons. Population
pressure continues to place a severe burden on productive capacity,
creating a food deficit, especially of wheat. Foreign assistance and
commercial imports fill the gap. Underemployment remains a serious
problem, and a growing concern for Bangladesh's agricultural sector will
be its ability to absorb additional manpower. Finding alternative
sources of employment will continue to be a daunting problem for future
governments, particularly with the increasing numbers of landless
peasants who already account for about half the rural labor force.
Fortunately for Bangladesh, many new jobs - mostly for women - have been
created by the country's dynamic private ready-made garment
industry,[citation needed] which grew at double-digit rates through most
of the 1990s.[citation needed]By the late 1990s, about 1.5 million
people, mostly women, were employed in the garments sector. During
2001-2002, export earnings from ready-made garments reached $3,125
million, representing 52% of Bangladesh's total exports.
Eastern Bengal was known for its fine muslin and silk fabric before the
British period. The dyes, yarn, and cloth were the envy of much of the
premodern world. Bengali muslin, silk, and brocade were worn by the
aristocracy of Asia and Europe. The introduction of machine-made
textiles from England in the late eighteenth century spelled doom for
the costly and time-consuming handloom process. Cotton growing died out
in East Bengal, and the textile industry became dependent on imported
yarn. Those who had earned their living in the textile industry were
forced to rely more completely on farming. Only the smallest vestiges of
a once-thriving cottage industry survived.
At independence Bangladesh was one of the least industrially developed
of the populous nations. Annual per capita consumption of steel and
cement was only about one-third that of India, for example, and electric
power consumption per capita was less than one-fifth.
